Tuesday, February 23, 2016

Fitbit fall of almost 20% in stock – Les Echos

After the star pupil LinkedIn there are two and a half weeks, it is the turn of Fitbit to suffer the wrath of Wall Street professor. The title is down nearly 20% on Tuesday after the group announced forecast for 2016 that disappointed analysts.

For the full year 2015, the indicators yet emerge at very correct levels. Revenues more than doubled year on year, to $ 1.86 billion and the Group generated 254.1 million profit. During the last quarter, the manufacturer of connected watches and bracelets was even better than what he had announced at the benefit (0.35 dollars per share) as revenue (to 711.6 million US dollars).

Between early October and late December, the group passed 8.2 million of its products and said that 79% of total quarterly revenue comes from its latest products, namely the Fitbit Surge (his first shows connected but for athletes and focused on the mid-range), the Fitbit Fitbit Charge and HR.

More than 20 million products sold in 2015

For the full year, the company sold 21 million products. If Apple monopolizes the segment of Premium with the connected watch, Fitbit well so resilient in the middle and the entry level, price bracelets and activity trackers starting at $ 60.

For comparison, the Cupertino would have passed 8.8 million copies of its Apple Watch in 2015 ( model was marketed as the end of April , Ed ), according to Juniper Research estimates US firm.

But Fitbit has dampened Wall Street by indicating it plans to generate between 420 and 440 million in revenue in the first quarter of 2016 while the consensus reached by Bloomberg counting on 484 600 000.

Two new products soon on the track

The group, also claimed that the launch and cost higher production of its new products would affect its results in the first quarter. Among them, we find the Fitbit wristband Alta, sold 139.95 euros pre-order.

Unlike the Fitbit Charge, this new device does not apply to users with intensive sports and basic functionality such as recording the number of steps on the day, offers a range of mostly five days.

Another new Blaze Fitbit flirting even more than the Fitbit Surge with the design and functionality of a connected and sold 229.65 euros for pre-shows. Products and explanations did not convince Wall Street, it seems.